2 years ago
In a missive addressed to the CEOs of fiscal institutions, the Central Bank of Kenya (CBK) has said fiscal institutions operating successful the state indispensable cease and desist from dealing with 2 Nigerian fintechs, Flutterwave and Chipper Cash. The missive reiterates the CBK politician Patrick Njoroge and the Asset Recovery Agency (ARA)’s assertions that the 2 companies are not licensed to run successful Kenya.
Flutterwave and Chipper’s Clash With the CBK
The Central Bank of Kenya (CBK) has ordered fiscal institutions successful the state to cease and desist from dealing with 2 Nigerian fintech startups Flutterwave and Chipper Cash. The bid came hardly 24 hours aft the CBK governor, Patrick Njoroge, had told journalists that the 2 entities are not licensed to run successful Kenya.
Before the announcement by the CBK, a High Court successful Kenya had ruled that Flutterwave’s slope accounts beryllium frozen to marque mode for a probe into the fintech giant’s alleged amerciable activities. The tribunal ruling subsequently enabled Kenya’s Asset Recovery Agency (ARA) to artifact Flutterwave’s entree to much than 50 slope accounts which reportedly clasp astir $60 million.
As antecedently reported by Bitcoin.com News, the ARA has argued that Flutterwave is not providing merchant services arsenic per claims but is alternatively progressive successful wealth laundering activities. However, Flutterwave dismissed the allegations and claimed to “have the records to verify this.” The fintech unicorn, which raised $250 cardinal earlier this year, besides claimed it “maintains the highest regulatory standards successful our operations.”
In addition, the fintech firm’s connection claimed its “anti-money laundering practices and operations are regularly audited by 1 of the Big Four firms.”
CEOs of Financial Institutions Told to Confirm Their Compliance
While Flutterwave suggested successful its connection that is moving with the regulators, Njoroge’s remarks and the CBK’s consequent missive to CEOs of Kenyan fiscal institutions dated July 29, reiterate ARA’s allegations that Flutterwave is engaged successful “money remittance and outgo services without licensing and authorization.”
Meanwhile, successful summation to informing the heads of the Kenyan fiscal institutions astir the 2 fintechs’ operating licence status, the missive besides demands the CEOs to corroborate their compliance with the bid wrong 7 days.
“You are truthful directed to instantly cease and desist from dealing with Flutterwave and Chipper. You are thereafter required, wrong 7 days of the day of the missive to corroborate to CBK your compliance with the directive,” the CBK’s missive reads.
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